exclusive listing corporate buffalo wild wings...2012/01/27 · coldwell banker the property...

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

For more information, please contact: In Association with:

Robert C. Sanner

Partner/Broker

415-677-0439

[email protected] LIC #00869657

Rick Sanner

Vice President

415-677-0429

[email protected] LIC #01792433

Paul Wells

Coldwell Banker The Property Exchange

A Wyoming Licensed Broker LIC #10772

Cassidy Turley Northern California www.ctbtnnn.com

Corporate Buffalo Wild Wings Cheyenne, Wyoming

One of the Strongest Economies and Lowest Unemployment Rates in the U.S.

File Photograph

Price: $1,760,000 – 6.46% Cap Rate

New 10-Year NNN Lease with Increases

BWW IS HIGHLY SUCCESSFUL:

STOCK PRICE IS UP 400% IN 6 YEARS

EXCLUSIVE LISTING

Not a Ground Lease —

Land and Building for Sale

TAX FREE STATE

Buffalo Wild Wings Grill & Bar Cheyenne, Wyoming

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0512:17

LOCATION Northwest corner of Frontier Mall Drive and Prairie Avenue, Cheyenne, Wyoming. A

pad in front of Cheyenne Marketplace Shopping Center.

LOT SIZE Approximately 1.50 acres – 65,340+/– square feet.

IMPROVEMENTS Under construction, to be completed by October 2012, a freestanding 5,000+/–

square foot BUFFALO WILD WINGS GRILL & BAR restaurant.

LEASE Leased to a 100%-owned subsidiary of, and guaranteed by, BUFFALO WILD

WINGS GRILL & BAR, INC. for 10 years from October, 2012 until October, 2022.

The annual net rent of $113,750 increases to $121,550 in Year 6. The lease is net

with the tenant responsible for all taxes, insurance and maintenance including roof

and structure. The landlord has no responsibilities. There are four 5-year options to

renew with fixed rental increases each option period. (See “Annual Income” below).

See also “Sales Clause.”

ANNUAL INCOME

PRICE $1,760,000 — 6.46% Cap Rate

RENT PER SQUARE FOOT $22.75 net per year — $1.90 net per month

FINANCING The property will be delivered free and clear of permanent financing.

YEARS ANNUAL RENT

1–5 $113,750

6–10 $121,550

Option 1 $137,650

Option 2 $151,400

Option 3 $166,550

Option 4 $183,200



ABOUT THE PARENT

COMPANY GURANTOR

Headquartered in Minneapolis, BUFFALO WILD WINGS GRILL & BAR, INC.

(NASDAQ: BWLD) is a casual dining restaurant and sports bar franchise that is

known for its buffalo wings and signature sauces. The menu features fresh chicken

wings and other items including boneless wings, chicken tenders, popcorn shrimp,

specialty hamburgers and sandwiches, wraps, Buffalito® soft tacos, appetizers and

salads. The restaurants serve approximately 20 domestic and imported beers on

tap, including several local or regional micro-brews and a wide selection of bottled

beers, wines, and liquor. Customers have the option of watching sporting events or

other popular programs on projection screens and up to 40 additional televisions; or

playing Buzztime® Trivia or video games.

Buffalo Wild Wings Grill & Bar has consistently been rated among the top ten casual

restaurant chains in the country. As of March 25, 2012, the company operated over

835 units in 48 states.

The company and its stock price have performed extremely well. In Fall 2006, the

stock was $17/share, and it has quintupled since then!! The market value of the

company (early May, 2012) is nearly $1.60 billion, with a stock price of $86/ share.

In February, 2012, the company reported excellent quarterly earnings, above Wall

Street expectations. The stock jumped 20% in a few days. See the attached “The

Strength of Buffalo Wild Wings.”

For the first quarter ended March 25, 2012, revenue increased 37.9% to $251.1

million compared to the first quarter of 2011. Net earnings increased 22.8% to $18.2

million versus the first quarter of 2011. Net worth was $335.5 million.

For fiscal year ended December 25, 2011, sales were $784.5 million with net income

of $50.4 million.

More information can be obtained from the company’s website,

www.buffalowildwings.com

THIS ENTITY GUARANTEES THE LEASE.

ABOUT THE TENANT The tenant is Blazin Wings, Inc., a wholly owned subsidiary of BWLD. This is the

entity used by BWLD for much of its real estate activity nationwide.

BWLD DOES guarantee the lease.



SALES CLAUSE There is a “sales clause” in the lease as follows:

During the first five years of the lease store, sales must reach $1.7 million during

some consecutive 12 month period, at least once. If not, tenant has a one-time right

to terminate at the end of the fifth year, paying a penalty of about $140,000.

HOWEVER, the 12-month sales of the average BWW nationally is about $2.71

million (see paragraph below). Seemingly, the chance that the tenant would NEVER

reach $1.7 million during some 12 month period even once in the five years is (in the

opinion of the broker) remote.

For the quarter ending December 31, 2011, the average weekly sales for corporate

BWW stores were $51,953. Annualizing that (with 52.14 weeks per year), the

corporate stores are running yearly sales of $2,710,000.

SITE INFORMATION The property is located in front of the Cheyenne Marketplace shopping center on the

northwest corner of Frontier Mall Drive and Prairie Avenue. Cheyenne Marketplace

is anchored by Lowe’s Home Improvement, Kohl’s, Michaels, and Bed, Bath &

Beyond.

Located on the southeast corner is Frontier Mall, a 536,442+/- square foot single-

story enclosed mall which currently boasts a 98% occupancy rate. Frontier Mall

is the largest mall in the city. The mall has four major department stores, Dillard’s

(West), Dillard’s (East), JC Penney and Sears, plus over 75 stores and restaurants

including The Sports Authority, Bath & Body Works, Boot Barn, Buckle, Chick-fil-A,

Chili’s, Chipotle, Christopher & Banks, Claire’s, C.J. Banks, Finish Line, Game Stop,

GNC, Journeys, Kay Jewelers, maurices, PacSun, Rue 21, Subway, Tradehome

Shoes and Victoria’s Secret. It was built and is still owned by a large REIT.

This retail corridor is the dominant shopping area in a six county area located in the

southeast corner of Wyoming at I-25 and I-80. The property is located two miles

north of the central office district of Cheyenne. The Colorado state line is 10 miles

south, so the market area also includes northern parts of Colorado.

The manager of Frontier Mall considers the trade area population to be more than

200,000, because Cheyenne is the “market town” for a wide radius of rural areas and

small towns.

Other national retailers in the area include Target, PetSmart, Ross, TJ Maxx, Big

Kmart, Wal-Mart Supercenter, OfficeMax, Office Depot, Sam’s Club, Pier 1 Imports,

and Walgreens, to name a few.



ABOUT THE AREA In general, Wyoming is one of the economically healthiest states in the U.S., due to

extensive oil, gas and coal reserves. One of the “hottest” mineral plays in the U.S. is

the Niobrara shale deposit, largely in Wyoming. Shale is non-dense rock filled with

hydrocarbons. This particular shale is 4%-8% hydrocarbons by weight, and current

energy prices and extraction techniques make it economic to exploit. The city’s

unemployment rate is quite low, only 6.0% in March, 2012 (far below the U.S.

rate of 8.2%). Unlike many states, state tax revenues are in good shape. (This is

positive for the city of Cheyenne, being the state capital). Taxes, including property

taxes passed through to the tenants, are low. There is no personal income tax in

Wyoming.

Cheyenne is the capital and largest city in Wyoming. The population is 57,618 at

the 2010 census. The trade area is at least 80,000 (see demographics below).

However, the manager of the nearby mall considers the trade area to be 200,000

(see above). Cheyenne is the northern terminus of the extensive and rapidly

growing Front Range Urban Corridor, a rectangular region of urban population

located along the eastern face of the Rocky Mountains in Colorado and Wyoming.

Cheyenne is strategically situated at a major transportation hub (the intersection of

Interstates 25 and 80 and two major railroads). Only 90 minutes north of Denver,

Cheyenne is also the site of F.E. Warren Air Force Base.

The nearest significant airport is Denver International Airport (DEN). DEN is

hub to Frontier, Great Lakes and United Continental, and is served by a host of

airlines offering non-stop and connecting flights to all points of the globe. DEN is

about 100 miles southeast of Cheyenne, via Interstate 25.

DEMOGRAPHICS

NOTE The information set forth herein has been received by us from sources we believe to

be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

WYOMING

DEMOGRAPHICS 3-MILE 5-MILE 7-MILE

Population (2011) 55,228 77,117 81,346

Average HH Income $62,712 $61,503 $61,908

Growth 2000-2011 5.77% 9.98% 11.17%



BUFFALO WILD WINGS — SITE PLAN



CHEYENNE MARKETPLACE — SITE PLAN


The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness

AERIAL


The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness

MAP



Updated Summary Report (%)

January 27, 2012

Longitude: -104.80121180

Latitude: 41.16113630

3 mi

Ring

5 mi

Ring

7 mi

Ring

POPULATION

1990 Total Population 49,319 65,013 67,079 2000 Total Population 52,216 70,117 73,173

2011 Total Population 55,228 77,117 81,346

2016 Total Population 57,515 80,916 85,583 % Population Change 1990-2000 5.87% 7.85% 9.08%

% Population Change 2000-2011 5.77% 9.98% 11.17%

% Population Change 2011-2016 4.14% 4.93% 5.21%

HOUSEHOLDS

1990 Total Households 19,727 25,192 25,889 2000 Total Households 21,373 27,774 28,854

2011 Total Households 23,457 31,800 33,340

2016 Total Households 23,593 32,247 33,891 % Households Change 1990-2000 8.34% 10.25% 11.45%

% Households Change 2000-2011 9.75% 14.50% 15.55%

% Households Change 2011-2016 .58% 1.40% 1.66%

2011 RACE

% 2011 White Population 88.27% 87.55% 87.73% % 2011 Black Population 2.72% 2.82% 2.73%

% 2011 American Indian/Alaska Native .95% .97% .99%

% 2011 Asian/Hawaiian/Pacific Islander 1.36% 1.35% 1.31% % 2011 Other Population (Incl 2+ Races) 6.70% 7.31% 7.24%

% 2011 Hispanic Population 12.94% 13.77% 13.64% % 2011 Non-Hispanic Population 87.06% 86.23% 86.36%



Updated Summary Report (%)

January 27, 2012

Longitude: -104.80121180

Latitude: 41.16113630

3 mi

Ring

5 mi

Ring

7 mi

Ring

INCOME

2011 Per Capita Income $26,635 $25,362 $25,373 2011 Median Household Income $49,993 $49,255 $49,589

2011 Average Household Income $62,712 $61,503 $61,908

% 2011 Household Income < $10,000 5.08% 4.91% 4.78%

% 2011 Household Income $10,000-$14,999 4.11% 4.16% 4.01%

% 2011 Household Income $15,000-$19,999 5.74% 5.94% 6.05% % 2011 Household Income $20,000-$24,999 5.17% 5.41% 5.45%









% 2011 Household Income $200,000-$249,999 .76% .68% .69% % 2011 Household Income $250,000-$499,999 1.45% 1.47% 1.51%

% 2011 Household Income $500,000+ .07% .05% .05%

2011 Average Household Size 2.3 2.3 2.4

% 2011 Total Owner Occupied Housing Units 64.77% 65.96% 66.93% % 2011 Total Renter Occupied Housing Units 35.23% 34.04% 33.07%

2011 Total Daytime Population 67,911 86,576 89,739 2011 Total Daytime Work Population 39,128 44,709 45,670

2011 Total Establishments 3,425 3,985 4,066

exclusive listing corporate buffalo wild wings...2012/01/27 · coldwell banker the property...

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